Exxon Shareholders are not Happy With Company
Shareholders of Exxon Mobil Corp., whose last CEO got $147 million in pay and pension benefits last year, expressed their unhappiness by casting an unusually large number of votes against directors who approved the executive’s package.
Shareholders on Wednesday also ignored a board recommendation and approved a resolution to require that directors win a majority vote to be elected.
Longtime company officials couldn’t remember shareholders approving a measure over the board’s opposition. The directors could still scuttle the proposal.
Twelve other shareholder resolutions – all opposed by the board – were rejected, including three that called for reports or shareholder approval of executive and director compensation. None of the compensation measures got more than 12.9 percent support.
Exxon Mobil directors are usually elected with percentages well into the 90s. But on Wednesday, four members of the board’s compensation committee received only 79 percent to 82 percent, the company said.
Chairman and CEO Rex W. Tillerson said the mood reflected publicity surrounding compensation given to his predecessor and former boss, Lee R. Raymond, who was paid $49 million in salary, bonuses and restricted stock in 2005, then got a $98 million lump-sum pension benefit when he retired at year end.
“We all recognize that there has been a lot of controversy and comment around compensation,” Tillerson said. “Probably most likely what we were seeing is some people voting their disapproval of how that was handled.”
I am a little surprised by the shareholder reaction. Not that I don’t believe that the shareholders are upset but they are actually speaking out. Exxon for example, makes a lot of controversial decisions based on having to keep shareholders happy. It’s great to see that the shareholders are upset with the way Exxon is handling their business and they are willing to cast votes against the company’s executive board. Problem probably comes from how much money the Shareholders didn’t get from Lee’s exit as chairman, and not nearly enough from the way day to day business is operated. But all in all I would say it is a start!Â